If your IRS transcript suddenly shows Code 290 or Code 291, it means the IRS made a correction to your tax return — and your refund amount may have changed.
These codes appear during Error Resolution processing, which often follows:
- Wage/income mismatch
- Dependent claim issues
- Credit qualification adjustments (EITC/CTC)
- Recovery Rebate / Stimulus corrections
- Withholding reporting errors
- IRS catching missing income from W-2/1099 files
This article explains what each adjustment code means, what caused it, and what happens next.
Code 290 — Tax Assessed (Refund Reduced or Amount Owed)
Code 290 means the IRS added tax to your return.
This can result in:
- A reduced refund, or
- A new balance owed to the IRS
Common reasons for Code 290:
- IRS located more income than reported
- Tax credits were reduced or denied
- Filing status corrected
- Child/Dependent errors
- Math error on return
Code 290 almost always results in less money.
Your transcript will show a dollar amount next to Code 290
— this is the amount added to your tax liability.
Code 291 — Tax Decreased (Refund Increased)
Code 291 is a positive update.
It means the IRS reduced your tax liability.
That usually happens when:
- Eligible credits were increased
- Dependents or withholding got re-verified
- IRS corrected something in your favor
This code adds more money to your refund.
Where You Will See the Change
Watch your Refund Amount section:
| Code Combo | Change Result |
|---|---|
| Code 290 only | Refund lowered → or balance owed |
| Code 291 only | Refund increased |
| 290 + 971 | IRS will send a letter explaining why |
| 290 → 291 | IRS corrected itself (refund restored) |
Example Scenarios
| Issue | First Code | Second Code | Result |
|---|---|---|---|
| Missing income found | 290 posted | none | Refund reduced |
| Credit denied then approved | 290 | 291 | Refund reinstated |
| Wage mismatch resolved | 971 notice | 291 | Refund increased |
| IRS math correction | 290 | none | Partial reduction |
If Code 971 appears, a notice has been sent (or will be).
What Happens to Your Refund Timeline?
Adjustments reset part of your processing timeline temporarily.
| Stage | What IRS Does | Timeline Impact |
|---|---|---|
| Code 290 | Adjustment posted | Freeze refund |
| Code 291 | Adjustment reversed | Refund re-reviewed |
| Code 846 | Refund approved | Deposit scheduled |
Most taxpayers see 2–6 week delays after adjustments.
Should You Call the IRS?
Call ONLY if:
✔ Code 290 reduces refund and you disagree
✔ Code 971 notice requests documents
✔ No movement for 60+ days after adjustment
✔ Adjustments are major (thousands of $ change)
IRS phone: 800-829-1040
Positive Signs to Watch For
These often appear before refund release:
- 571 / 572 — Hold cleared
- 811 — Freeze removed
- As of Date moves forward
- Code 846 — Refund issued
Once 846 posts — countdown to deposit begins.
Quick Interpretation Table
| Code | Meaning | Action Required |
|---|---|---|
| 290 | Tax assessed → refund reduced | Review notice |
| 291 | Tax decreased → refund increased | None |
| 971 | Notice issued | Read & respond if instructed |
| 846 | Refund approved | Track deposit |
